As inflation continues to impact the economy, many employers are trying to help employees with their finances by developing inflation-resistant benefit packages.
Student Loan Repayments
Offering student loan repayment programs helps employees pay down debt and improve their financial security. This benefit is especially appealing to younger workers whose salaries may not keep up with inflation.
Tax-Advantaged Accounts for Healthcare Expenses
Providing tax-advantaged healthcare accounts such as HSAs, FSAs, and HRAs can help employees cover medical costs and protect them from inflation pressures. These accounts allow employees to set aside pre-tax dollars for qualified medical expenses and help reduce out-of-pocket costs.
Direct Relationships with Healthcare Providers
Going through insurance companies often means paying more than necessary for healthcare services. By establishing direct relationships with healthcare providers, self-insured employers can help employees reduce medical expenses and limit their exposure to inflationary pressures.
Matching Contributions
Matching employee contributions for retirement, healthcare, student loan repayment, and other benefits obviously helps employees, but these employer contributions are also deductible as long as they are within the applicable limits.
The Section 125 Plan
The Section 125 plan allows employees to convert taxable benefits into tax-free benefits. By implementing a Section 125 program employers help employees pay for various expenses, including healthcare premiums, childcare costs, and retirement contributions with pre-tax deductions.
For more Employee Benefits information, contact INSURICA today.
Copyright © 2023 Smarts Publishing. This is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice.
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